The One Word Missing From Buffett's Annual Letter

Warren Buffett attends the 'Becoming Warren Buffett' World Premiere at The Museum of Modern Art on January 19, 2017 in New York City. (Photo by Jamie McCarthy/Getty Images)

These days, can anyone tweet, converse or goose-step--let alone write 28 pages--without using the five letter word: Trump?

Warren Buffett just did.

As a value investing aficionado and Berkshire shareholder, I anticipate the annual missive from the Oracle of Omaha with bated breath. When it popped online today, I knew enough not to expect much commentary on the economic or the political. A secret to Buffett's success has been an agnostic view on the too-many moving pieces of the macro scene. By avoiding the human obsession with the short-term and fortune telling, Buffett has always concentrated on the only thing that matters: buying wonderful businesses at fair prices. As Peter Lynch says: “If you spend more than 13 minutes analyzing economic and market forecasts, you've wasted 10 minutes." I myself have found no other investing mantra more important.

But really? No mention of the greatest threat to the democratic process and the rule of law since Nixon--or beyond?

In April of 2016, Buffett went on record saying that Berkshire would do fine even with a Trump presidency. But that was at last year's meeting--well before the election, and well before anyone thought it was a serious concern. And Buffett made some further post-election comments in December about still buying stocks, but this letter was his first major written opportunity to hold forth.

He even mentions the worthwhile contributions of immigrants but somehow never calls out Trump by name. Perhaps the silence is deafening. Buffett was an ardent supporter of Hillary Clinton in the election and his failure to mention Trump may be the most damning maneuver of all.

Or not.

Because if there's one thing I wanted as a Buffett follower, it was a reasoned and sober commentary--refracted through the prism of his extraordinary, eminently sensible brain--on what this erratic, errant president means for our country, our markets and our lives.

James Berman owns emerging markets stocks and ETFs (inlcuding the IEMG), both in his own accounts and in accounts he manages for clients.